Why frontier markets are outperforming emerging markets

Should investors seek shelter on the frontier from the storm engulfing emerging markets? Yes say experts as long as they choose their country carefully.
Marshall Stocker, Eaton Vance
Marshall Stocker, Eaton Vance

The Institute of International Finance IIF says frontier markets are outperforming emerging markets, as investors retreat under the onslaught of escalating trade wars, a strengthening dollar and rising interest rates.

In its latest forecast, published on September 20, the IIF says non-resident portfolio inflows to frontier market countries should rise to $145 billion in 2018, from $124 billion in 2017.

This is below the $152 billion the Washington-based trade group originally forecast at the beginning of the year, but still a good result considering the volatility and turbulence afflicting global markets.

However, the IIF also says the headline figures can be somewhat misleading since...

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